1.1 	A bill for an act
1.2 	relating to elections; prohibiting political parties
1.3 	that receive a public subsidy from making independent
1.4 	expenditures; requiring that income tax checkoff money
1.5 	and political contributions refunded by the state be
1.6 	used only for candidates who have agreed to spending
1.7 	limits; imposing campaign contribution and spending
1.8 	limits on legislative caucuses that choose to
1.9 	participate in the political contribution refund
1.10 	program; limiting multicandidate expenditures by
1.11 	political parties; increasing the maximum political
1.12 	contribution refund from $50 to $100; amending
1.13 	Minnesota Statutes 2004, sections 10A.01, subdivisions
1.14 	9, 18; 10A.25, subdivision 1, by adding subdivisions;
1.15 	10A.27, subdivision 11, by adding a subdivision;
1.16 	10A.275, subdivision 1; 10A.28, subdivisions 1, 2;
1.17 	10A.31, subdivisions 3, 5; 10A.322; 290.06,
1.18 	subdivision 23.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	Section 1. Minnesota Statutes 2004, section 10A.01,
1.21 	subdivision 9, is amended to read:
1.22 		Subd. 9.Campaign expenditure. (a) "Campaign
1.23 	expenditure" or "expenditure" means a purchase or payment of
1.24 	money or anything of value, or an advance of credit, made or
1.25 	incurred for the purpose of influencing the nomination or
1.26 	election of a candidate or for the purpose of promoting or
1.27 	defeating a ballot question.
1.28 	(b) "Expenditure" includes a cost incurred to design,
1.29 	produce, or disseminate a communication if the communication
1.30 	contains words such as "vote for," "reelect," "(name of
1.31 	candidate) for (office)," "vote against," "defeat," or another
1.32 	phrase or campaign slogan that in context can have no reasonable
2.1 	meaning other than to advocate support for or opposition to the
2.2 	nomination or election of one or more clearly identified
2.3 	candidates.
2.4 	(c) "Expenditure" is presumed to include a cost incurred to
2.5 	design, produce, or disseminate a communication if the
2.6 	communication names or depicts one or more clearly identified
2.7 	candidates; is disseminated during the 45 days before a primary
2.8 	election, during the 60 days before a general election, or
2.9 	during a special election cycle until election day; and the cost
2.10 	exceeds the following amounts for a communication naming or
2.11 	depicting a candidate for the following offices:
2.12 	(1) $500 for a candidate for governor, lieutenant governor,
2.13 	attorney general, secretary of state, or state auditor; or 
2.14 	(2) $100 for a candidate for state senator or
2.15 	representative.
2.16 	An individual or association presumed under this paragraph
2.17 	to have made an expenditure may rebut the presumption by an
2.18 	affidavit signed by the spender and filed with the board stating
2.19 	that the cost was not incurred with intent to influence the
2.20 	nomination, election, or defeat of any candidate, supported by
2.21 	any additional evidence the spender chooses to submit.  The
2.22 	board may consider any additional evidence it deems relevant and
2.23 	material and must determine by a preponderance of the evidence
2.24 	whether the cost was incurred with intent to influence the
2.25 	nomination, election, or defeat of a candidate.
2.26 	(d) An expenditure is considered to be made in the year in
2.27 	which the candidate made the purchase of goods or services or
2.28 	incurred an obligation to pay for goods or services.
2.29 	(e) An expenditure made for the purpose of defeating a
2.30 	candidate is considered made for the purpose of influencing the
2.31 	nomination or election of that candidate or any opponent of that
2.32 	candidate.
2.33 	(f) Except as provided in clause (1), "expenditure"
2.34 	includes the dollar value of a donation in kind.
2.35 	"Expenditure" does not include:
2.36 	(1) noncampaign disbursements as defined in subdivision 26;
3.1 	(2) services provided without compensation by an individual
3.2 	volunteering personal time on behalf of a candidate, ballot
3.3 	question, political committee, political fund, principal
3.4 	campaign committee, or party unit; or 
3.5 	(3) the publishing or broadcasting of news items or
3.6 	editorial comments by the news media, if the news medium is not
3.7 	owned by or affiliated with any candidate or principal campaign
3.8 	committee; or 
3.9 	(4) a cost incurred by an association for a communication
3.10 	targeted to inform solely its own dues-paying members of the
3.11 	association's position on a candidate.

3.12 	Sec. 2. Minnesota Statutes 2004, section 10A.01,
3.13 	subdivision 18, is amended to read:
3.14 		Subd. 18.Independent expenditure. (a) "Independent
3.15 	expenditure" means an expenditure expressly advocating the
3.16 	election or defeat of a clearly identified candidate, if the
3.17 	expenditure that is made without the express or implied consent,
3.18 	authorization, or cooperation of, and not in concert with or at
3.19 	the request or suggestion of, any candidate or any candidate's
3.20 	principal campaign committee or agent.  An independent
3.21 	expenditure is not a contribution to that candidate. An
3.22 	expenditure by a political party or political party unit in a
3.23 	race where the political party has a candidate on the ballot is
3.24 	not an independent expenditure.
3.25 	(b) An expenditure is presumed to be not independent if,
3.26 	for example:
3.27 	(1) in the same election cycle in which the expenditure
3.28 	occurs, the spender or the spender's agent retains the
3.29 	professional services of an individual or entity that, in a
3.30 	nonministerial capacity, provides or has provided
3.31 	campaign-related service, including polling or other campaign
3.32 	research, media consulting or production, direct mail, or
3.33 	fundraising, to a candidate supported by the spender for
3.34 	nomination or election to the same office as any candidate whose
3.35 	nomination or election the expenditure is intended to influence
3.36 	or to a political party working in coordination with the
4.1 	supported candidate;
4.2 	(2) the expenditure pays for a communication that
4.3 	disseminates, in whole or in substantial part, a broadcast or
4.4 	written, graphic, or other form of campaign material designed,
4.5 	produced, or distributed by the candidate or the candidate's
4.6 	principal campaign committee or their agents;
4.7 	(3) the expenditure is based on information about the
4.8 	candidate's electoral campaign plans, projects, or needs that is
4.9 	provided by the candidate or the candidate's principal campaign
4.10 	committee or their agents directly or indirectly to the spender
4.11 	or the spender's agent, with an express or tacit understanding
4.12 	that the spender is considering making the expenditure;
4.13 	(4) before the election, the spender or the spender's agent
4.14 	informs a candidate or the principal campaign committee or agent
4.15 	of a candidate for the same office as a candidate clearly
4.16 	identified in a communication paid for by the expenditure about
4.17 	the communication's contents; timing, location, mode, or
4.18 	frequency of dissemination; or intended audience; or 
4.19 	(5) in the same election cycle in which the expenditure
4.20 	occurs, the spender or the spender's agent is serving or has
4.21 	served in an executive, policymaking, fundraising, or advisory
4.22 	position with the candidate's campaign or has participated in
4.23 	strategic or policymaking discussions with the candidate's
4.24 	campaign relating to the candidate's pursuit of nomination or
4.25 	election to office and the candidate is pursuing the same office
4.26 	as a candidate whose nomination or election the expenditure is
4.27 	intended to influence.
4.28 	An individual or association presumed under this paragraph
4.29 	to have made an expenditure that was not independent may rebut
4.30 	the presumption by an affidavit signed by the spender and filed
4.31 	with the board stating that the expenditure was made without the
4.32 	express or implied consent, authorization, or cooperation of,
4.33 	and not in concert with or at the request or suggestion of, any
4.34 	candidate or candidate's principal campaign committee or agent,
4.35 	supported by additional evidence the spender chooses to submit.
4.36 	The board may consider any additional evidence it deems relevant
5.1 	and material and must determine by a preponderance of the
5.2 	evidence whether the expenditure was independent.
5.3 	(c) An expenditure by anyone other than a principal
5.4 	campaign committee that does not qualify as an independent
5.5 	expenditure under this subdivision is deemed to be an approved
5.6 	expenditure under subdivision 4.

5.7 	Sec. 3. Minnesota Statutes 2004, section 10A.25,
5.8 	subdivision 1, is amended to read:
5.9 		Subdivision 1.Limits are voluntary.  The expenditure
5.10 	limits imposed by this section on a candidate apply only to a
5.11 	candidate who has signed and filed an agreement under section
5.12 	10A.322 to be bound by them as a condition of receiving a public
5.13 	subsidy for the candidate's campaign. The prohibition on
5.14 	independent expenditures imposed by subdivision 14 applies only
5.15 	to a political party that has signed an agreement under section
5.16 	10A.322 to be bound by it as a condition of receiving a public
5.17 	subsidy for the party's activities.  The expenditure limits
5.18 	imposed by subdivisions 15 and 16 apply only to a party unit
5.19 	that has signed and filed an agreement under section 10A.322 to
5.20 	be bound by them as a condition of receiving a public subsidy
5.21 	for the party unit's activities.

5.22 	Sec. 4. Minnesota Statutes 2004, section 10A.25, is
5.23 	amended by adding a subdivision to read:
5.24 		Subd. 14.Independent expenditures by political parties.
 5.25 	(a) A political party that receives a public subsidy must not
5.26 	make an independent expenditure.
5.27 	(b) A political party that has agreed not to make
5.28 	independent expenditures as a condition of receiving a public
5.29 	subsidy is released from the prohibition but remains eligible to
5.30 	receive a public subsidy if a political party that has not
5.31 	agreed to the prohibition makes an independent expenditure
5.32 	during that election cycle.
5.33 	(c) A political party that has not agreed to the
5.34 	prohibition in this subdivision must file written notice with
5.35 	the board and serve written notice on every other political
5.36 	party within 24 hours after making an independent expenditure.
6.1 	The notice must state only that the political party has made an
6.2 	independent expenditure.  Upon receipt of the notice, the
6.3 	political party that agreed to the prohibition is no longer
6.4 	subject to the prohibition but remains eligible to receive a
6.5 	public subsidy.

6.6 	Sec. 5. Minnesota Statutes 2004, section 10A.25, is
6.7 	amended by adding a subdivision to read:
6.8 		Subd. 15.Party expenditures. A party unit must use a
6.9 	contribution for which it has issued a political contribution
6.10 	receipt form only for the benefit of candidates for whom there
6.11 	is in effect a spending limit agreement under section 10A.322.

6.12 	Sec. 6. Minnesota Statutes 2004, section 10A.25, is
6.13 	amended by adding a subdivision to read:
6.14 		Subd. 16.Limits on legislative caucuses. (a) In a year
6.15 	in which a general election is held for a house of the
6.16 	legislature, the members of a party caucus in that house must
6.17 	not make campaign expenditures that result in aggregate
6.18 	expenditures in excess of $750,000.
6.19 	(b) During an election cycle, in any year before the
6.20 	general election year for a house of the legislature, the
6.21 	members of a party caucus in that house must not make campaign
6.22 	expenditures that exceed 20 percent of the general election year
6.23 	limit.
6.24 	(c) A party caucus in a house of the legislature that has
6.25 	agreed to be bound by the expenditure limits imposed by this
6.26 	subdivision as a condition of participating in the political
6.27 	contribution refund program is released from the expenditure
6.28 	limits but remains eligible to participate in the political
6.29 	contribution refund program if another party caucus in the same
6.30 	house of the legislature has not agreed to be bound by the
6.31 	limits and has received contributions or made or become
6.32 	obligated to make expenditures during that election cycle in
6.33 	excess of 50 percent of the expenditure limit set forth in
6.34 	paragraph (a).
6.35 	(d) A party caucus in a house of the legislature that has
6.36 	not agreed to be bound by the limits must file written notice
7.1 	with the board and provide written notice to every other party
7.2 	caucus in the same house of the legislature within 24 hours
7.3 	after exceeding the limit in paragraph (c).  The notice must
7.4 	state only that the party caucus has received contributions or
7.5 	made or become obligated to make campaign expenditures in excess
7.6 	of the limit in paragraph (c).  Upon receipt of the notice, the
7.7 	party caucus that has agreed to be bound by the limits is no
7.8 	longer bound by the expenditure limits but remains eligible to
7.9 	participate in the political contribution refund program.
7.10 	(e) If a party caucus in a house of the legislature is
7.11 	released from expenditure limits under this subdivision, the
7.12 	party caucus is also released from the limits on contributions
7.13 	under section 10A.27, subdivision 14.

7.14 	Sec. 7. Minnesota Statutes 2004, section 10A.27,
7.15 	subdivision 11, is amended to read:
7.16 		Subd. 11.Contributions from certain types of
7.17 	contributors.  A candidate must not permit the candidate's
7.18 	principal campaign committee to accept a contribution from a
7.19 	party caucus in a house of the legislature that has not filed a
7.20 	spending limit agreement under section 10A.332, or from a
7.21 	political committee, political fund, lobbyist, or large
7.22 	contributor, if the contribution will cause the aggregate
7.23 	contributions from those types of contributors to exceed an
7.24 	amount equal to 20 percent of the expenditure limits for the
7.25 	office sought by the candidate, provided that the 20 percent
7.26 	limit must be rounded to the nearest $100.  For purposes of this
7.27 	subdivision, "large contributor" means an individual, other than
7.28 	the candidate, who contributes an amount that is more than $100
7.29 	and more than one-half the amount an individual may contribute.

7.30 	Sec. 8. Minnesota Statutes 2004, section 10A.27, is
7.31 	amended by adding a subdivision to read:
7.32 		Subd. 14.Contributions to legislative caucuses. (a) The
7.33 	chair of a party caucus in a house of the legislature that has
7.34 	filed a spending limit agreement under section 10A.322 must not
7.35 	permit the caucus to accept aggregate contributions from an
7.36 	individual, political committee, political fund, or party unit
8.1 	in an amount more than $500 in a year in which a general
8.2 	election is held for that house or $100 in other years.
8.3 	(b) The chair of a party caucus in a house of the
8.4 	legislature that has filed a spending limit agreement under
8.5 	section 10A.322 must not permit the caucus to accept a
8.6 	contribution from a political committee, political fund,
8.7 	lobbyist, or large contributor, if the contribution will cause
8.8 	the aggregate contributions from those types of contributors to
8.9 	exceed an amount equal to 20 percent of the expenditure limit.
8.10 	For purposes of this subdivision, "large contributor" means an
8.11 	individual who contributes more than $250.

8.12 	Sec. 9. Minnesota Statutes 2004, section 10A.275,
8.13 	subdivision 1, is amended to read:
8.14 		Subdivision 1.Exceptions.  Notwithstanding other
8.15 	provisions of this chapter, the following expenditures by a
8.16 	party unit, or two or more party units acting together, with at
8.17 	least one party unit being either:  the state committee or the
8.18 	party organization within a congressional district, county, or
8.19 	legislative district, are not considered contributions to or
8.20 	expenditures on behalf of a candidate for the purposes of
8.21 	section 10A.25 or 10A.27 and must not be allocated to candidates
8.22 	under section 10A.20, subdivision 3, paragraph (g):
8.23 	(1) expenditures on behalf of candidates of that party
8.24 	generally without referring to any of them specifically in a
8.25 	published, posted, or broadcast advertisement;
8.26 	(2) expenditures for the preparation, display, mailing, or
8.27 	other distribution of an official party sample ballot listing
8.28 	the names of three or more individuals whose names are to appear
8.29 	on the ballot; or 
8.30 	(3) expenditures for a telephone conversation including 
8.31 	mentioning with roughly equal emphasis the names of three or
8.32 	more individuals whose names are to appear on the ballot;
8.33 	(4) expenditures for a political party fund-raising effort
8.34 	on behalf of three or more candidates; or 
8.35 	(5) expenditures for party committee staff services that
8.36 	benefit three or more candidates.

9.1 	Sec. 10. Minnesota Statutes 2004, section 10A.28,
9.2 	subdivision 1, is amended to read:
9.3 		Subdivision 1.Exceeding expenditure limits. (a) A
9.4 	candidate subject to the expenditure limits in section 10A.25
9.5 	who permits the candidate's principal campaign committee to make
9.6 	expenditures or permits approved expenditures to be made on the
9.7 	candidate's behalf in excess of the limits imposed by section
9.8 	10A.25, as adjusted by section 10A.255, is subject to a civil
9.9 	penalty of up to four times the amount by which the expenditures
9.10 	exceeded the limit.
9.11 	(b) The chair of a political party or party unit subject to
9.12 	the prohibition on independent expenditures in section 10A.25,
9.13 	subdivision 14, or the prohibition on expenditures in section
9.14 	10A.25, subdivision 15, who permits the political party or party
9.15 	unit to make expenditures in violation of those prohibitions is
9.16 	subject to a civil penalty of up to four times the amount of the
9.17 	expenditures.
9.18 	(c) The chair of a party caucus in a house of the
9.19 	legislature subject to the expenditure limits in section 10A.25,
9.20 	subdivision 16, who permits the caucus to make expenditures in
9.21 	excess of those limits, as adjusted by section 10A.255, is
9.22 	subject to a civil penalty of up to four times the amount by
9.23 	which the expenditures exceeded the limit.

9.24 	Sec. 11. Minnesota Statutes 2004, section 10A.28,
9.25 	subdivision 2, is amended to read:
9.26 		Subd. 2.Exceeding contribution limits.  A political
9.27 	committee, political fund, or principal campaign committee that
9.28 	makes a contribution, or a candidate who permits the candidate's
9.29 	principal campaign committee to accept contributions, in excess
9.30 	of the limits imposed by section 10A.27 is subject to a civil
9.31 	penalty of up to four times the amount by which the contribution
9.32 	exceeded the limits. The chair of a party caucus in a house of
9.33 	the legislature who permits the caucus to accept contributions
9.34 	in excess of the limits imposed by section 10A.27 is subject to
9.35 	a civil penalty of up to four times the amount by which the
9.36 	contribution exceeded the limits.

10.1 	Sec. 12. Minnesota Statutes 2004, section 10A.31,
10.2 	subdivision 3, is amended to read:
10.3 		Subd. 3.Form.  The commissioner of revenue must provide
10.4 	on the first page of the income tax form and the renter and
10.5 	homeowner property tax refund return a space for the individual
10.6 	to indicate a wish to pay $5 ($10 if filing a joint return) from
10.7 	the general fund of the state to finance election campaigns.
10.8 	The form must also contain language prepared by the commissioner
10.9 	that permits the individual to direct the state to pay the $5
10.10 	(or $10 if filing a joint return) to:  (1) one of the major 
10.11 	political parties; (2) any minor political party that qualifies
10.12 	under subdivision 3a; or (3) (2) all qualifying candidates as
10.13 	provided by subdivision 7.  The renter and homeowner property
10.14 	tax refund return must include instructions that the individual
10.15 	filing the return may designate $5 on the return only if the
10.16 	individual has not designated $5 on the income tax return.

10.17 	Sec. 13. Minnesota Statutes 2004, section 10A.31,
10.18 	subdivision 5, is amended to read:
10.19 		Subd. 5.Allocation.  (a)  [GENERAL ACCOUNT.] In each
10.20 	calendar year the money in the general account must be allocated
10.21 	to candidates as follows:
10.22 	(1) 21 percent for the offices of governor and lieutenant
10.23 	governor together;
10.24 	(2) 4.2 percent for the office of attorney general;
10.25 	(3) 2.4 percent each for the offices of secretary of state
10.26 	and state auditor;
10.27 	(4) in each calendar year during the period in which state
10.28 	senators serve a four-year term, 23-1/3 percent for the office
10.29 	of state senator, and 46-2/3 percent for the office of state
10.30 	representative; and
10.31 	(5) in each calendar year during the period in which state
10.32 	senators serve a two-year term, 35 percent each for the offices
10.33 	of state senator and state representative.
10.34 	(b)  [PARTY ACCOUNT.] In each calendar year the money in
10.35 	each party account must be allocated as follows:
10.36 	(1) 14 percent for the offices of governor and lieutenant
11.1 	governor together;
11.2 	(2) 2.8 percent for the office of attorney general;
11.3 	(3) 1.6 percent each for the offices of secretary of state
11.4 	and state auditor;
11.5 	(4) in each calendar year during the period in which state
11.6 	senators serve a four-year term, 23-1/3 percent for the office
11.7 	of state senator, and 46-2/3 percent for the office of state
11.8 	representative;
11.9 	(5) in each calendar year during the period in which state
11.10 	senators serve a two-year term, 35 percent each for the offices
11.11 	of state senator and state representative; and
11.12 	(6) ten percent for the state committee of a political
11.13 	party that has signed and filed with the board an agreement
11.14 	under section 10A.322, subdivision 2a, that it will not make
11.15 	independent expenditures and that it will use contributions for
11.16 	which it has issued a political contribution receipt only for
11.17 	the benefit of candidates for whom there is in effect a spending
11.18 	limit agreement under section 10A.322.
11.19 	Money allocated to each state committee under clause (6)
11.20 	must be deposited in a separate account and must be spent for
11.21 	only those items enumerated in section 10A.275.  Money allocated
11.22 	to a state committee under clause (6) must be paid to the
11.23 	committee by the board as it is received in the account on a
11.24 	monthly basis, with payment on the 15th day of the calendar
11.25 	month following the month in which the returns were processed by
11.26 	the Department of Revenue, provided that these distributions
11.27 	would be equal to 90 percent of the amount of money indicated in
11.28 	the Department of Revenue's weekly unedited reports of income
11.29 	tax returns and property tax refund returns processed in the
11.30 	month, as notified by the Department of Revenue to the board.
11.31 	The amounts paid to each state committee are subject to biennial
11.32 	adjustment and settlement at the time of each certification
11.33 	required of the commissioner of revenue under subdivisions 7 and
11.34 	10.  If the total amount of payments received by a state
11.35 	committee for the period reflected on a certification by the
11.36 	Department of Revenue is different from the amount that should
12.1 	have been received during the period according to the
12.2 	certification, each subsequent monthly payment must be increased
12.3 	or decreased to the fullest extent possible until the amount of
12.4 	the overpayment is recovered or the underpayment is distributed.
12.5 	Money not allocated to a state committee under clause (6)
12.6 	because the state committee has not signed and filed with the
12.7 	board a spending limit agreement under section 10A.322 must be
12.8 	canceled to the general fund.

12.9 	Sec. 14. Minnesota Statutes 2004, section 10A.322, is
12.10 	amended to read:
12.11 	10A.322 SPENDING LIMIT AGREEMENTS.
12.12 		Subdivision 1.Agreement by candidate. (a) As a
12.13 	condition of receiving a public subsidy, a candidate must sign
12.14 	and file with the board a written agreement in which the
12.15 	candidate agrees that the candidate will comply with sections
12.16 	10A.25; 10A.27, subdivision 10; 10A.31, subdivision 7, paragraph
12.17 	(c); and 10A.324.
12.18 	(b) Before the first day of filing for office, the board
12.19 	must forward agreement forms to all filing officers.  The board
12.20 	must also provide agreement forms to candidates on request at
12.21 	any time.  The candidate must file the agreement with the board
12.22 	by September August 1 preceding the candidate's general election
12.23 	or a special election held at the general election.  An
12.24 	agreement may not be filed after that date.  An agreement once
12.25 	filed may not be rescinded.
12.26 	(c) The board must notify the commissioner of revenue of
12.27 	any agreement signed filed under this subdivision.
12.28 	(d) Notwithstanding paragraph (b), if a vacancy occurs that
12.29 	will be filled by means of a special election and the filing
12.30 	period does not coincide with the filing period for the general
12.31 	election, a candidate may sign and submit file a spending limit
12.32 	agreement not later than the day after the candidate files the
12.33 	affidavit of candidacy or nominating petition for the office.
12.34 		Subd. 2.How long agreement is effective. (e) The
12.35 	agreement, insofar as it relates to the expenditure limits in
12.36 	section 10A.25, as adjusted by section 10A.255, and the
13.1 	contribution limit in section 10A.27, subdivision 10, remains
13.2 	effective for candidates until the dissolution of the principal
13.3 	campaign committee of the candidate or the end of the first
13.4 	election cycle completed after the agreement was filed,
13.5 	whichever occurs first.
13.6 		Subd. 2.Agreement by political party or party unit. (a)
13.7 	As a condition of receiving a public subsidy, the chair of the
13.8 	state committee of a political party must sign and file with the
13.9 	board a written agreement in which the state committee agrees
13.10 	that the political party and all its party units will comply
13.11 	with section 10A.25, subdivision 14.  An agreement once filed
13.12 	may not be rescinded.
13.13 	(b) As a condition of participating in the political
13.14 	contribution refund program, the chair of a party unit must sign
13.15 	and file with the board a written agreement in which the party
13.16 	unit agrees that it will comply with section 10A.25, subdivision
13.17 	15.  An agreement once filed may not be rescinded.
13.18 	(c) As a condition of participating in the political
13.19 	contribution refund program, the chair of a party unit that is a
13.20 	party caucus in a house of the legislature must also sign and
13.21 	file with the board a written agreement in which the caucus
13.22 	agrees that it will comply with sections 10A.25, subdivision 16,
13.23 	and 10A.27, subdivision 14.  An agreement once filed may not be
13.24 	rescinded.
13.25 	(d) The board must provide agreement forms to political
13.26 	parties and party units on request at any time.  The state chair
13.27 	must file the agreement with the board by February 1 of any year
13.28 	during an election cycle in order to be allocated money
13.29 	designated to the party account on tax returns for the preceding
13.30 	and current taxable years.  The party unit must file the
13.31 	agreement with the board by August 1 preceding the general
13.32 	election or a special election held at the general election.  If
13.33 	a vacancy occurs that will be filled by means of a special
13.34 	election and the filing period does not coincide with the filing
13.35 	period for the general election, a party unit may sign and file
13.36 	a spending limit agreement not later than the day after the end
14.1 	of the filing period.
14.2 	(e) The agreement remains in effect until the end of the
14.3 	first general election cycle completed after the agreement was
14.4 	filed or the dissolution of the political party or party unit,
14.5 	whichever occurs first.
14.6 	(f) The board must notify the commissioner of revenue of
14.7 	any agreement filed under this subdivision.
14.8 		Subd. 4.Refund receipt forms; penalty. (a) The board
14.9 	must make available to a political party on request and to any ,
14.10 	party unit, or candidate for whom an agreement under this
14.11 	section is effective, a supply of official refund receipt forms
14.12 	that state in boldface type that (1) a contributor who is given
14.13 	a receipt form is eligible to claim a refund as provided in
14.14 	section 290.06, subdivision 23, and (2) if the contribution is
14.15 	to a candidate,that the candidate, political party, or party
14.16 	unit has signed an agreement to limit campaign expenditures as
14.17 	provided in this section.  The forms must provide duplicate
14.18 	copies of the receipt to be attached to the contributor's claim.
14.19 	(b) If a candidate who does not sign an agreement under
14.20 	this section and who the candidate or the treasurer of the
14.21 	candidate's principal campaign committee willfully issues an
14.22 	official refund receipt form or a facsimile of one to any of the
14.23 	candidate's contributors, the issuer of the receipt is guilty of
14.24 	a misdemeanor. If the state chair of a political party has not
14.25 	signed an agreement not to make independent expenditures and the
14.26 	chair or treasurer of a party unit willfully issues an official
14.27 	refund receipt or a facsimile of one to any of the party's
14.28 	contributors, the issuer of the receipt is guilty of a
14.29 	misdemeanor.  If the chair of a party unit has not signed and
14.30 	filed with the board an agreement to comply with section 10A.25,
14.31 	subdivision 15, and willfully issues an official refund receipt
14.32 	or a facsimile of one to any of the party unit's contributors,
14.33 	the chair is guilty of a misdemeanor.  If the chair of a party
14.34 	unit that is a party caucus in a house of the legislature has
14.35 	not signed and filed with the board an agreement to comply with
14.36 	section 10A.25, subdivision 16, and willfully issues an official
15.1 	refund receipt or a facsimile of one to any of the party unit's
15.2 	contributors, the chair is guilty of a misdemeanor.

15.3 	Sec. 15. Minnesota Statutes 2004, section 290.06,
15.4 	subdivision 23, is amended to read:
15.5 		Subd. 23.Refund of contributions to political parties
15.6 	and candidates.  (a) A taxpayer may claim a refund equal to the
15.7 	amount of the taxpayer's contributions made in the calendar year
15.8 	to candidates and to a political party.  The maximum refund for
15.9 	an individual must not exceed $50 $100 and for a married couple,
15.10 	filing jointly, must not exceed $100 $200.  A refund of a
15.11 	contribution is allowed only if the taxpayer files a form
15.12 	required by the commissioner and attaches to the form a copy of
15.13 	an official refund receipt form issued by the candidate or party
15.14 	and signed by the candidate, the treasurer of the candidate's
15.15 	principal campaign committee, or the chair or treasurer of the
15.16 	party unit, after the contribution was received.  The receipt
15.17 	forms must be numbered, and the data on the receipt that are not
15.18 	public must be made available to the campaign finance and public
15.19 	disclosure board upon its request.  A claim must be filed with
15.20 	the commissioner no sooner than January 1 of the calendar year
15.21 	in which the contribution was made and no later than April 15 of
15.22 	the calendar year following the calendar year in which the
15.23 	contribution was made.  A taxpayer may file only one claim per
15.24 	calendar year.  Amounts paid by the commissioner after June 15
15.25 	of the calendar year following the calendar year in which the
15.26 	contribution was made must include interest at the rate
15.27 	specified in section 270.76.
15.28 	(b) No refund is allowed under this subdivision for a
15.29 	contribution to a candidate unless the candidate:
15.30 	(1) has signed and filed an agreement to limit campaign
15.31 	expenditures as provided in section 10A.322;
15.32 	(2) is seeking an office for which voluntary spending
15.33 	limits are specified in section 10A.25; and
15.34 	(3) has designated a principal campaign committee.
15.35 	This subdivision does not limit the campaign expenditures
15.36 	of a candidate who does not sign an agreement but accepts a
16.1 	contribution for which the contributor improperly claims a
16.2 	refund.
16.3 	No refund is allowed under this subdivision for a
16.4 	contribution to a political party or party unit unless the state
16.5 	chair of the political party has signed and filed with the board
16.6 	an agreement under section 10A.322 to comply with the spending
16.7 	limitation in section 10A.25, subdivision 14.  No refund is
16.8 	allowed under this subdivision for a contribution to a political
16.9 	party unit unless the chair of the party unit has signed and
16.10 	filed with the board an agreement under section 10A.322 to
16.11 	comply with the spending limitation in section 10A.25,
16.12 	subdivision 15.  No refund is allowed under this subdivision for
16.13 	contribution to a party unit that is a party caucus in a house
16.14 	of the legislature unless the chair of the caucus has signed and
16.15 	filed with the board an agreement under section 10A.322 to
16.16 	comply with the spending limitations in section 10A.25,
16.17 	subdivision 16.  Notwithstanding the deadline in section 10A.322
16.18 	to be eligible to receive a distribution of checkoff money under
16.19 	section 10A.31, there is no deadline for filing an agreement to
16.20 	be eligible to receive a refund under this subdivision.
16.21 	(c) For purposes of this subdivision, "political party"
16.22 	means a major political party as defined in section 200.02,
16.23 	subdivision 7, or a minor political party qualifying for
16.24 	inclusion on the income tax or property tax refund form under
16.25 	section 10A.31, subdivision 3ahas the meaning given it in
16.26 	section 10A.01, subdivision 29.
16.27 	A "major party" or "minor party" includes the aggregate of
16.28 	that party's organization within each house of the legislature,
16.29 	the state party organization, and the party organization within
16.30 	congressional districts, counties, legislative districts,
16.31 	municipalities, and precincts."Party unit" has the meaning
16.32 	given it in section 10A.01, subdivision 30.
16.33 	"Candidate" means a candidate as defined in section 10A.01,
16.34 	subdivision 10, except a candidate for judicial office.
16.35 	"Contribution" means a gift of money.
16.36 	(d) The commissioner shall make copies of the form
17.1 	available to the public and candidates upon request.
17.2 	(e) The following data collected or maintained by the
17.3 	commissioner under this subdivision are private:  the identities
17.4 	of individuals claiming a refund, the identities of candidates
17.5 	to whom those individuals have made contributions, and the
17.6 	amount of each contribution.
17.7 	(f) The commissioner shall report to the campaign finance
17.8 	and public disclosure board by each August 1 a summary showing
17.9 	the total number and aggregate amount of political contribution
17.10 	refunds made on behalf of each candidate and each political
17.11 	party.  These data are public.
17.12 	(g) The amount necessary to pay claims for the refund
17.13 	provided in this section is appropriated from the general fund
17.14 	to the commissioner of revenue.
17.15 	(h) For a taxpayer who files a claim for refund via the
17.16 	Internet or other electronic means, the commissioner may accept
17.17 	the number on the official receipt as documentation that a
17.18 	contribution was made rather than the actual receipt as required
17.19 	by paragraph (a).

17.20 	Sec. 16. EFFECTIVE DATE.
 17.21 	This act is effective January 1, 2006, and applies to
17.22 	contributions received, expenditures made, and checkoff money
17.23 	distributed on and after that date.